What are interest only (IO) repayments?
When you have a loan with interest only (IO) repayments, you only pay the monthly interest charged on your loan balance meaning you won’t reduce your remaining loan balance, otherwise known as your principal. You can opt into IO repayments for a certain time period agreed by both you and ubank. Once your IO repayment period is over, you will automatically revert to principal and interest (P&I) repayments.
IO repayments are available for a maximum of 5 consecutive years per application, and a total maximum of 10 years during the life of your loan. You can get IO repayments on both owner occupied and investor loans subject to credit acceptance, however not within the last 5 years of your loan term.